Shares of SEPC Ltd. (formerly Shriram EPC Ltd.) saw an impressive 11% surge in Friday's trade following the announcement of a substantial Rs 854.57 crore contract with Steel Authority of India Ltd (SAIL). The agreement, signed on October 8, formalizes a Letter of Acceptance previously issued by SAIL-IISCO in August.
Major Contract for SAIL-IISCO Steel Plant
The contract involves the pellet plant balance of plant (BOP) package for the SAIL-IISCO Steel Plant located in Burnpur, West Bengal. This includes crucial civil and structural works. The project is an integral part of the steel plant's ongoing expansion, aiming to boost crude steel production to 4.08 million tonnes per annum (MTPA). SEPC will execute the project on a divisible turnkey basis, with commissioning expected within 32 months from the effective date of September 3, 2026.
The total contract price is Rs 951.60 crore, but after passing on Rs 97.04 crore in input tax credit to SAIL, the net value stands at Rs 854.57 crore.
Order Book Crosses Rs 10,000 Crore Milestone
In addition to the new SAIL contract, SEPC announced that its consolidated order book has now surpassed Rs 10,000 crore. This significant milestone provides the engineering, procurement, and construction (EPC) company with substantial revenue visibility for project execution over the coming years. Company management highlighted that this figure is more than nine times its total income of Rs 1,085.8 crore reported for FY26.
Venkataramani Jaiganesh, Managing Director of SEPC, commented on the agreement, stating, "The agreement formalises one of the company's significant industrial projects and highlighted the focus on execution within the stipulated timeline, with quality and safety standards." He further added that achieving the Rs 10,000-crore order-book milestone instills confidence for pursuing larger and more complex opportunities.
SEPC's Business Profile and Financials
SEPC Ltd. is an EPC company specializing in various infrastructure sectors, including water and wastewater management, roads, industrial infrastructure, and mining. Their services encompass the design, procurement, construction, and commissioning of complex infrastructure projects.
For the fiscal year 2026, SEPC reported a total income of Rs 1,085.8 crore, with an EBITDA of Rs 108.9 crore and a net profit of Rs 53.5 crore. This represents a notable increase from the previous fiscal year (FY25), where the total income stood at Rs 646 crore.